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TikTok: the ultimate direct marketing machine

By Zsarlene B. Chua, Senior Reporter

DESPITE the myriad of issues it faces in the US and in other countries, no one can deny the popularity of social media app TikTok and its impact on music marketing because of its highly sophisticated personalization algorithm, said one of its executives.

“I think that TikTok is the ultimate marketing machine for music, and for other things as well. If you think about it, the game in music promotion and marketing has always been how do you get the right song in front of the right audience, and ideally play it for them in repeat because we all know that when we hear something often enough it does sort of build a sort of affinity to that track — if it is a fit between a fan and the style of the music,” Ole Obermann, ByteDance’s vice-president and global head for music, said in a Sept. 14 session at the recently concluded digital All That Matters conference.

All That Matters is an annual conference for the sports and entertainment industry in Asia. Now on its 15th year, the conference was moved online due to health and safety precautions against the coronavirus disease (COVID-19) pandemic. The conference ran from Sept. 14 to 18.

And if the game in music promotion is to always get the right people to listen to a song — and on repeat at that — then TikTok has got it covered with its “sophisticated algorithm,” according to Mr. Obermann.

“And you have to think about the fact that every single TikTok feed is personalized. No two people in the world are getting exactly the same feed because the algorithm is that sophisticated… it picks up on the finest little signals of what you like, what I like, what everybody likes, and it customizes the feed,” he explained.

TikTok’s “for you” page is a section in the app where users can view a feed of recommended videos to users based on their activity on the app. The content on this page is generated by the app’s artificial intelligence (AI) depending on what kind of content a user liked, interacted with, or searched. It’s also highly personalized.

“So we are able to get the right song in front of the right fan on a one-to-one basis and literally find hundreds of millions of fans,” he said, before adding that if a user liked a song, their feed will have more videos of people using the same song.

“So if you’re talking about the ultimate direct marketing machine, I think that’s the space we’re playing in here,” he said.

TikTok, although it has been in existence for just over four years, has amassed users in the hundreds of millions as in July — it reported having 700 million users worldwide. TikTok is a Chinese video-sharing social networking service owned by ByteDance and is commonly used to create seconds-long videos of anything: from dances and memes, to educational and informative content. It was originally launched in China in 2016 as Douyin before going worldwide as TikTok in 2018.

TikTok’s continued success in the US remains a toss-up, though, as until now issues about national security hound its presence in the US and in other countries, most especially in India where it has been banned since June.

“If we’re analyzing the numbers, the thing that jumps out at you is you’re approaching trillions of overall usage in terms of creations and views on the platform,” Mr. Obermann said of the reach of the app and why it is such a fertile ground for people who want to promote music.

Unlike traditional music strategies, which Mr. Obermann described as a one-way street as they determine popularity of a song through the number of streams, downloads, etc., success in TikTok is measured in the number of videos created using a song.

Before working for ByteDance, Mr. Obermann was the chief digital officer and executive vice-president for strategy and business development at Warner Music Group.

But TikTok, according to Mr. Obermann, can also be used just for more than promoting music or creating viral dance challenges. TikTok can also be used by marketing agencies to push out ads that are “more engaging.”

“One of the slogans we’ve been really pushing with TikTok is “make TikToks, not ads” and with all of our brand partners and agency partners, we’re educating them on the fact that TikTok allows you to create advertisements that can be much more engaging and fun than sort of the traditional ad format,” he explained, before adding that that’s meaningful for music because if the right song goes with the right ad on the platform, “you’re gonna get massive reach, massive engagement and audience.”

AGI to buy back up to P2.5B common shares

ALLIANCE GLOBAL Group, Inc. (AGI) will be buying back up to P2.5-billion worth of common shares listed on the exchange starting this week.

The Andrew L. Tan-led firm told the exchange on Monday its board of directors had approved a 12-month share buyback program beginning on Thursday.

The buyback will be done in the open market through the exchange’s trading facilities. AGI will be using cash and will book the shares as treasury shares.

It has not determined yet the total number of shares it will be buying, which will depend on the total price of shares. AGI said it has sufficient funding to support the planned buyback.

The program is intended to enhance AGI’s shareholder value.

AGI is currently doing a 12-month share buyback that will expire on Wednesday. It allocated P2.5 billion for the program and has, so far, bought back P2.06-billion worth of shares.

The company also did a two-year P5-billion share buyback program in 2017, from which it was able to buy about P4.28-billion worth of shares.

Shares in AGI closed P7.17 apiece on Monday, down eight centavos or 1.10% from the last session.

The company posted a 32% income drop to P3.8 billion in the first semester as its operations were challenged by the coronavirus pandemic. AGI has investments in real estate, hotel and casino, liquor manufacturing, and McDonald’s Philippines. — Denise A. Valdez

New condo to rise within Iloilo Business Park

MEGAWORLD CORP. is developing its sixth residential property inside the 72-hectare Iloilo Business Park (IBP) in Mandurriao, Iloilo City.

The Pinnacle will be the only residential condominium with IBP’s boutique hotel and commercial district. The 20-storey tower will have 572 units, ranging from studio (up to 34 square meters) to two-bedroom with deck (up to 113.5 sq.m.).

“Iloilo City, particularly Iloilo Business Park, remains an attractive location for property investments. Since we started selling our first residential condominium tower here in 2013, prices per square meter have already more than doubled. Those who bought a P3-million, 40-square meter unit seven years ago would see their property appreciating to about P6.8 million today,” Jennifer Palmares-Fong, vice-president for sales and marketing, Megaworld Iloilo, said in a statement.

The Pinnacle will have an amenity deck on the 5th floor, featuring a lap pool and kiddie pool, fitness center, outdoor fitness area, function room, outdoor lounge, daycare center, children’s play area, jogging path, private dining room, and an atrium garden. It will also have a three-level podium parking facility with a driver’s lounge.

The Pinnacle is due to be completed in 2026.

iflix banking on popularity of same-sex love stories with My Gear Your Gown

AFTER the success of the Thai “boys love” (BL) series 2gether the Series and the Philippines’ own web series Gameboys, it seems that shows featuring same-sex love stories are getting more popular and online streaming platform iflix is banking on that trend with the introduction of My Gear Your Gown.

The show, which premiered last week, tells the story of Pai (Win Pawin Kulkaranyawich) and Itt (Marc Pahun Jiyacharoen), two schoolmates who cross paths and fall in love, but personal motivations and crises threaten to pull each other apart. The film was shot in Thailand.

The teaser and first episode were shown during the press preview on Sept. 14, and it was apparent that the show was targeted towards people who are looking for a wholesome love story between young people. Based on the first episode, the story follows the hallmarks of a cute love story: the main characters, a goody-two-shoes and a bad boy, meet in unlikely circumstances. The pacing was a bit slow but since the story will follow a timeskip (according to the teaser), one can expect the pace to pick up in the next episodes.

BL as an entertainment genre, though niche, was first introduced in Japan and was typically created by women for women, although it has also found popularity among LGBTQ (lesbian, gay, bisexual, trans, queer) groups for its portrayal of same-sex love stories.

“People need to see characters that reflect their struggles, their experiences, their wins, their achievements. People should feel that their stories are being told,” Ivan Andrew Payawal, writer for the Gameboys web series, told BusinessWorld in July. He noted that series like these underscore the importance of representation in entertainment and media.

My Gear Your Gown is iflix’s first series produced by WeTV, Tencent’s own streaming platform. Tencent is a Chinese technology company which owns messaging apps such as WeChat and the world’s largest video game vendor. Tencent acquired the Malaysia-based streaming service, iflix, in June this year.

My Gear Your Gown drops episodes every Monday and can be viewed on both iflix and WeTV for free, although VIP subscribers of the platforms can watch a second new episode every week. — Zsarlene B. Chua

Nomadland wins Toronto prize, putting it on path to Oscars

NOMADLAND, directed by Chloe Zhao, won the Toronto International Film Festival (TIFF) People’s Choice Award, setting it up as a potential frontrunner in the upcoming Oscars.

It’s the second honor claimed this month by Zhao’s drama about a woman’s journey through the American West after being wiped out in the Great Recession. Nomadland won the top prize at the Venice international film festival on Sept. 12.

The Toronto award has often been a sign of those films set to do well at Hollywood’s highest honors, the Academy Awards. In recent years, TIFF’s People’s Choice winners that have gone on to win the Best Picture prize at the Oscars have included 12 Years a Slave, Slumdog Millionaire, and The King’s Speech.

First runner up for the TIFF People’s Choice award was Regina King’s One Night in Miami and second runner up was Beans, directed by Tracey Deer, the film festival said Sunday in a statement. — Bloomberg

Lazada plans more ties with insurers as sales grow

ONLINE marketplace Lazada Philippines is partnering with four more insurance firms as the market for digital products has expanded after the pandemic led to lockdown measures and travel restrictions.

“During this time, we saw a double increase in insurance buyers compared to last year,” the e-commerce platform said in an e-mail.

Lazada did not disclose exact figures and the identity of the insurers, but said more customers had been attracted to various insurance products.

“We’ve launched quite a diverse range of insurance types in the platform, from car insurance, life plans, and health care. Moving forward, we are looking at exploring more insurance types and additional brands to onboard with us soon,” the company said.

Currently, Lazada has four insurance firms on its platform, namely: Sun Life of Canada (Philippines), Inc., FWD Life Insurance Corp., Insular Life Assurance Co. Ltd., and Generali Pilipinas Life Insurance Co., Inc.

Sun Life said the demand for insurance, especially for medical coverage, that Lazada extends to more customers had indeed grown.

“We are seeing a steady increase in the availment of these types of insurance products in Lazada. In fact, monthly availments have more than doubled in number from January to August,” Sun Life CEO and Country Head Benedicto C. Sison said in an e-mail.

Sun Life currently offers on Lazada its Life Armor, Family Armor, Personal Accident Armor and Byahero Protect. These cover costs for illnesses, including coronavirus disease 2019 (COVID-19), and accidents such as injuries from land-based travel.

Insular Life said the pandemic has shown the importance of insurance protection as the deadly virus and the lack of vaccine against it continue to claim lives.

“In general, we’ve seen a heightened appreciation for the benefits that life insurance protection brings to Filipino families, especially given the current health crisis,” Insular Life Executive Chairman Nina D. Aguas said in an e-mail.

Because of the expanding market for insurance products on Lazada, the company plans to offer more varied insurance products.

“Seeing the growth and promise of this segment, we plan to expand to accommodate the rise in demand. We are looking at exploring more insurance types and major players to onboard with us in the near future,” Lazada said.

In a directive in May, the Insurance Commission (IC) allowed agents until yearend — from the initial end-June period — to sell online or through other means using information and communication technology to give life and non-life insurers more selling options as the COVID-19 pandemic persists.

“The difficulties they have encountered relate to lost or low sales. This is why we have exerted efforts to allow and encourage sales through technologies, such as online selling. We have allowed foregoing with the face-to-face meetings between the client and the sales agent,” IC Commissioner Dennis B. Funa said in an e-mail. — Kathryn Kristina T. Jose

Gov’t fully awards T-bills even as investors ask for higher rates

THE GOVERNMENT fully awarded the Treasury bills (T-bills) it auctioned off on Monday as rates rose across-the-board amid expectations of steady borrowing costs for the rest of the year.

The Bureau of the Treasury (BTr) borrowed P20 billion as planned via the T-bills on Monday as the offer was more than thrice oversubscribed, with bids amounting to P72.899 billion.

Broken down, the BTr made a full P5-billion award of the 91-day debt papers out of P26.931 billion in tenders. The three-month papers fetched an average rate of 1.156%, up a tad from the 1.15% logged during last week’s auction.

It also raised P5 billion as planned via the 182-day T-bills out of total bids worth P14.007 billion. The average yield of the six-month papers inched up by 2.6 basis points (bps) to 1.615% from 1.589% previously.

For the 364-day securities, the Treasury raised the programmed P10 billion as tenders reached P31.961 billion. The one-year instruments were quoted at an average rate of 1.850%, up by 4.3 bps from the previous week’s 1.807%.

National Treasurer Rosalia V. de Leon said yields went up on market expectations of unchanged rates from the Bangko Sentral ng Pilipinas (BSP) for the rest of the year, even as demand remained strong.

“Rates for 182-day and 364-day tenors were slightly pushed up with expectations that the BSP will keep policy rates steady for the remainder of the year,” Ms. De Leon told reporters in a Viber message after the auction.

The central bank last month kept benchmark interest rates unchanged amid a benign inflation outlook and signs of economic recovery.

The policy-setting Monetary Board, at its fourth policy meeting for the year, kept the rates on the BSP’s overnight reverse repurchase, lending and deposit facilities at their record lows of 2.25%, 2.75% and 1.75% respectively.

Inflation eased to a three-month low of 2.4% in August, slower than 2.7% in July 2020, but faster than the 1.7% in August 2019.

This brought the year-to-date average to 2.5%, within the BSP’s 2-4% target band and slower than the 2.6% forecast for 2020.

A trader said by phone that investors still have ample cash and are seeking higher yields from the short-term securities.

Another trader said in an e-mail that the market will continue to invest funds in T-bills as investors are still waiting for stronger hints that the economy is on its way to recovery.

On Tuesday, the Treasury will auction off P30 billion worth of reissued 10-year bonds with a remaining life of nine years and nine months.

The Treasury is looking to raise P160 billion from the domestic market this month: P100 billion via weekly auctions of T-bills and P60 billion via Treasury bonds to be offered fortnightly.

The government is looking to borrow around P3 trillion this year from local and foreign lenders to help fund its budget deficit expected to hit 9.6% of the country’s gross domestic product. — K.K.T. Jose

DMCI to turn over 2nd Verdon Parc tower by Nov.

DMCI HOMES is set to turn over units at the second building of its Verdon Parc project in Ecoland Drive, Davao City by November.

The property developer said the Belvedere tower is 97% complete as of August, allowing owners to move in by November.

“Construction work on the building, which has 20 storeys of residential units, is down to the unit finishes and completion of building enhancements and upgrades,” DMCI Homes said.

The turnover date of Belvedere building was moved from March to November to be able to fulfill the company’s standard quality management processes and Office of the City Building Official requirements.

DMCI Homes is committed to the turnover of the two other towers, Trevans and Maurin buildings, by February 2021 and October 2021 respectively.

Tenet leads US box office while Mulan sales drop in China

FEWER US fans turned out in North American cinemas this weekend, with no big new movies opening, further complicating theaters’ efforts to recover from a five-month shutdown because of coronavirus disease 2019 (COVID-19).

Tenet remained the No. 1 movie in the US and Canadian theaters, researcher Comscore, Inc. said Sunday, even as ticket sales of $4.7 million slumped 26% from the previous week. The sci-fi thriller from AT&T Inc.’s Warner Bros. made the most sales from China, where it grossed $5.6 million this weekend.

Meanwhile, Walt Disney Co.’s Mulan made only $6.5 million in its second weekend in mainland China, a big drop-off from its already lackluster $23.2 million opening weekend sales. The movie debuted in Hong Kong, where it has faced a boycott, and Disney didn’t provide a sales number for the opening there.

While some of the North American shortfall is due to the continued closings of theaters in New York City and Los Angeles, the two largest markets, it also indicates audiences are wary of returning to theaters. Against that backdrop, studios have delayed their biggest releases, including most recently Warner Bros.’ decision to hold Wonder Woman 1984 until Christmas Day.

Los Angeles County health officials said this week it’s possible business restrictions may ease next month if COVID-19 trends continue to improve. New York Governor Andrew Cuomo said his state would hold off on any plans to let theaters reopen until the virus is under control.

About 3,500, or 58%, of North America’s 6,000 theaters are open, Comscore said.

The numbers add to an already difficult time for cinema chains. AMC Entertainment Holdings, Inc., the largest theater operator in the world, borrowed heavily to survive being closed for much of 2020. Representatives of the National Association of Theater Owners said at a Goldman Sachs Group, Inc. conference on Sept. 17 that the industry is still struggling to make people aware cinemas are open, partly because there are so few new releases.

“As more movies come out, more people are seeing the safety precautions that theaters are taking and they’re telling their friends who haven’t gone to the movies yet, and it builds from there,” said Phil Contrino, the group’s director of media and research. “And that’s incredibly crucial at this stage.”

Warner Bros. tried to buck the odds with the Sept. 3 theatrical release of Tenet, a $200 million production. But its path to financial success looks tenuous. The movie has taken in a total of $250 million worldwide, a sum the studio splits with theater owners, and Warner Bros. has also spent tens of millions of dollars marketing the picture.

The next big US movie release isn’t scheduled until Nov. 6, when Disney’s Marvel installment Black Widow is scheduled to premiere. It’s not clear whether that will go forward, and theater operators have repeatedly said they’re remaining flexible as the pandemic continues. The studio has experimented with new ways to get its films in front of audiences, releasing Mulan to Disney+ subscribers for $30. It didn’t provide data on how many customers bought the movie.

In Japan, the opening of Tenet made $1.15 million from 38 IMAX screens, the biggest ever for Warner Bros. and a Christopher Nolan film, despite theater capacity being restricted at 50%. Those IMAX screens accounted for 27% of the film’s gross in Japan. — Bloomberg

Money service firms linked to suspicious transactions

A NUMBER of local money service businesses were found to have allowed transactions from unknown customers to unverified entities even before the massive Bangladesh Bank heist in 2016, showing the country is an “attractive venue for financial crime,” a report found.

The Philippine Center of Investigative Journalism (PCIJ) looked into suspicious activity reports (SARs) submitted to the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) by the Bank of New York Mellon (BNYM) that involved Filipino subjects with amounts “too big to be left unnoticed by banks and regulators.”

“From the more than 2,100 SARs included in the FinCEN files, a total of 27 SARs, filed between 2010 and 2016, refer to Filipino individuals and companies as originators and beneficiaries of “suspicious” wires. These PDF reports contain narratives of more than 1,700 transactions worth at least $644 million,” PCIJ’s report said.

It noted actual figures could be higher as there are still transactions cited in prior SARs that were not included.

Based on the SARs involving activities of Philrem Service Corp. and Werquick, Inc., both local money service businesses, some of their transactions were flagged for reasons including the nondisclosure of the source of funds, unverifiable recipients, and large transactions done in between short periods of time.

“The findings of the reports once again emphasize the need to pursue intelligence-led changes for financial crime risk management — driven by meaningful improvements to public-private sector cooperation and cross-border information sharing, coupled with the use of technology — to enhance the global anti-financial crime framework,” International Institute of Finance President and Chief Executive Officer Tim Adams said in a statement.

About 70% of the estimated total $644 million were transacted by the money service businesses, of which $335 million was by Philrem while $124.1 million was from Werquick. The study also found 5,001 suspicious transfers worth $1.03 billion involving Philrem and Werquick from wires done from November 2012 to March 2016.

“In the SARs, it appears that Philrem and Werquick were able to send multimillion in dollars without identifying or verifying the source of the funds, the true beneficiary, as well as the purpose of the transactions,” PCIJ said.

Philrem is currently facing charges for four counts of money laundering for failing to report suspicious transactions in relation to the Bangladesh Bank heist in 2016.

A recent study by the Anti-Money Laundering Council (AMLC) also found that transactions related to sex exploitation of children during the lockdown were done mostly through money service businesses (60.2%), followed by banks where 35.2% of the money flowed through.

The AMLC, which serves as the Philippines financial intelligence unit and regulator, has a capacity that “has long been in question” given it has to deal with numerous suspicious transaction reports (STRs) with only 30 to 40 staff members in its financial intelligence analysis group, PCIJ said.

Earlier this month, AMLC Executive Director Mel Georgie B. Racela said they already received approximately 400,000 STRs so far this year, which was the total for 2019.

Suspicious transaction reports are filed with the AMLC when institutions see financial transactions that do not appear to be ordinary or could potentially be part of a dirty money scheme.

The Philippines is under an observation period until February 2021 and is expected to address the gaps in its anti-money laundering and terrorism financing rules to prevent being included in the gray list of countries deemed lax in enforcing measures against dirty money schemes. — Luz Wendy T. Noble

No identified fourth major telecommunications player — NTC

THE National Telecommunications Commission (NTC) has not identified a “fourth” major telecommunications player, an official said Monday.

“In terms of market capitalization, there are three major players such as PLDT group, Globe group, and DITO. There are other players, namely: Converge, InfiniVAN, NOW Telecom, and many others. This list is not in any hierarchy,” NTC Deputy Commissioner Edgardo V. Cabarios told BusinessWorld in a phone message on Monday, when asked to comment on NOW Corp.’s claim that its affiliate, NOW Telecom Co., Inc., is the country’s fourth telco player.

Mr. Cabarios added there are four entities that have been authorized to operate mobile networks: PLDT group, Globe group, DITO, and NOW Telecom.

In a statement e-mailed to reporters at the weekend, NOW Telecom said the NTC had “extended” its provisional authority to install, operate, and maintain a nationwide mobile telecommunications system.

“As the country’s fourth telco, NOW Telecom, an affiliate of publicly listed telecommunications, media, and technology firm NOW Corp., is currently setting the stage for its public listing as well as its 5G or fifth generation network rollout,” it added.

But industry observer and expert Eliseo M. Rio, Jr., a former undersecretary at the Department of Information and Communications Technology (DICT), said he does not know of any NTC nor DICT pronouncements declaring NOW as the fourth telco.

“They have been saying that… to boost their stocks. Today, their stocks dramatically shoot up,” he said in a phone message.

Shares in NOW Corp. on Monday closed 49.79% higher at P3.58 apiece.

NOW Corp. announced last year its affiliate’s collaboration with a Singapore-based company for a nationwide fiber rollout, which was seen to boost its ambition to become the fourth major telco player.

NOW was one of the candidates in the search for the country’s third telco service provider. The slot was given to Dito Telecommunity Corp., which is owned by Dennis A. Uy’s Udenna Corp. and Chelsea Logistics and Infrastructure Holdings Corp., and China’s China Telecommunications Corp. — Arjay L. Balinbin

KMC expands offerings amid ‘new normal’

KMC SOLUTIONS (KMC) expanded its offerings to cater to businesses that are adapting to the “new normal” amid the pandemic.

In a statement, KMC said it launched HOME, HUB, and HQ — “workforce distribution plan that allows businesses to split their operations and to provide their people with the option to work either from their home, near their homes or in their company headquarters.”

KMC said this would help address the operational challenges faced by business owners, as well as issues experienced by employees such as transportation restrictions, internet stability and data privacy.

“Through HOME, HUB, and HQ, we are partnering with our clients, enabling business continuity amid disruptions, providing clients with responsive and flexible real estate options to accommodate new ways of working,” Michael McCullough, CEO and co-founder of KMC, said.

To learn more about HOME, HUB, and HQ, and other services provided by KMC, visit https://kmc.solutions/.